June 12th, 2020 11:39 AM by T. Fanning
Last Updated: 6/12/20Friday's bond market has opened in negative territory, continuing yesterday's afternoon selling. The major stock indexes are showing strong gains, recovering a good portion of yesterday's sell-off that pushed the Dow lower by 1,861 points. It currently is up 767 points while the Nasdaq is up 239 points. The bond market is currently down 13/32 (0.70%), which with yesterday's afternoon weakness should cause this morning's mortgage rates to be higher than Thursday's early pricing by approximately .250 - .375 of a discount point. Some lenders revised rates higher before closing yesterday, so the size of the increase this morning will depend on whether or not you saw a change Thursday afternoon.Yesterday's 30-year Treasury bond auction was uneventful with the benchmarks showing an average level of interest in the securities. The bond and mortgage markets had little reaction to the 1:00 PM ET announcement. We did see weakness late in the day that caused some intraday revisions to rates, but it was not a result of the auction.June's preliminary reading to the University of Michigan's Index of Consumer Sentiment was posted at 10:00 AM ET today. It came in at 78.9, up from May's final reading of 72.3 and higher than expected. The increase means surveyed consumers felt better about their own financial situations than last month. Because rising confidence usually translates into stronger levels of consumer spending, we have to consider today's release bad news for bonds and mortgage rates.Next week has only a couple of relevant monthly economic reports for the markets to digest. One of them (Retail Sales) is considered to be highly important though. Monday has nothing of importance scheduled that is likely to affect rates. We can expect weekend news and stock movement to drive bond trading and mortgage pricing as the week begins. Look for details on next week's events in Sunday evening's weekly preview.If I were considering financing/refinancing a home, I would....Lock if my closing were taking place within 7 days...Lock if my closing were taking place between 8 and 20 days...Float if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.**http://www.hlmcolorado.com/DailyRateAdvisory
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.